A fundamental necessity in business is to stay ahead of the competition. In this age of technology, it is an absolute no-brainer that investing in software in one way or another is crucial in achieving this. The question surrounding the use of software in business is not why, but which. Some choose to purchase licenses for existing proven technologies to enhance their operations, and while this does work and is safe, is it the most beneficial option?
The answer is a complex one, to be honest, as problems are different and require different solutions. Sometimes, a use case is so specific and innovative that an existing solution does not exist. Other times, a thorough comparison proves an off-the-shelf product to be the winner, and at times, you can efficiently solve a problem without the need for software.
Nevertheless, most modern businesses, in some form, are software businesses. Either through customer-facing user interfaces or enterprise systems, for example, that streamline internal operations. Taking this into consideration, here are a few reasons why investing in tailor-made software solutions would prove to be beneficial for both startups and existing successful ventures.
Scalability
Growth is a fundamental aim for businesses of all sizes. Therefore, it’s imperative to have software solutions that can seamlessly adapt to the evolving needs and size of operations. While licensed software may offer different plans catering to various business sizes, such as a pay-as-you-go model (PAYG), custom solutions provide unparalleled scalability. Software developed from scratch can effortlessly scale up or down in response to changes in market demand, usage patterns, or workload fluctuations. This agility ensures optimal resource use where you can prevent wastage during decreased demand and ensure there is no performance loss during increased usage periods. A scalable software system is indispensable for sustainable growth and competitive advantage in today’s dynamic business environment, especially for online businesses experiencing rapid expansion.
Moreover, scalability extends beyond just operational adjustments. Custom software solutions can also scale in terms of geographical expansion, accommodating businesses seeking to enter new markets or serve a broader customer base. Businesses can effectively manage growth trajectories by leveraging scalable software infrastructure while maintaining operational efficiency and ensuring a consistent user experience across diverse markets and regions worldwide.
Flexibility
The point of software in business is to solve real business problems and thereby bring value. The best way to solve a specific problem is to have a specific solution. For whatever use cases, existing off-the-shelf software today is powerful and can cater to many different business rules. They are, however, limited by their inability to solve unique and rare problems. It is quite a common occurrence in a software project for client requirements needing to be changed or altered to meet the limitations of the existing system you choose to use. A tailor-made solution prevents the need to modify reasonable requirements as it would be built from the ground up entirely to solve the problem. Rather than redefining requirements around an existing solution, tailor-made software defines a solution around the existing problem.
Adaptability
Often, during a software project, the functional requirements change due to various factors. With off-the-shelf options, this sometimes means a complete system change, which will be wasteful in terms of time and financing. However, during the development process of a completely new solution, although not ideal, changes can be made whenever without producing too much waste. The solution can adapt to the changing requirements rather than holding you back from making new decisions.
Over their lifetime, some businesses completely change not only their model but also the type of products and services they provide for reasons such as changing market demands or inability to keep up with competition. Take Nokia as an example. It was the world’s largest mobile phone manufacturer about 20 years ago, transitioning to a leading telecommunications provider in recent years. Of course, only a tiny percentage of companies are of Nokia’s size; however, for any SME revolving around software to stay successful while undergoing drastic changes, the ability to run custom solutions so that you can adapt to changing needs is essential.
Customisability
Investing in customized applications can give your business a competitive edge by providing users with a unique experience that reflects the look and feel of your enterprise. Rather than being forced to be another sheep in the flock by using a popular system that is also being used by many other similar businesses, using a customized design and providing a customized experience helps build a unique brand.
Furthermore, in a world where data is a form of currency, storing, analyzing, and identifying trends to stay on top of market demands is vital. The ability to do this with off-the-shelf software relies on the software’s capabilities. When building a custom system, however, you can define precisely how and when you store data and how you analyze it to play it back into the application to influence and drive user interaction. It allows for a more personalized user experience as you can customize the application to look and behave differently for different demographics of the user base, which you can identify through the data analysis process.
Pioneering
Many of the biggest software companies today were startups with a new idea. WhatsApp and Instagram are just a couple of innovative ideas that eventually grew so big and popular to the point of being sold for billions of dollars. Uber was not the first of its kind but quickly became the most popular due to its custom solutions that exceeded the features of similar apps. Only some companies will be as big as existing tech companies, and only some ideas will be innovative. However, leaning towards creating a tailor-made solution for your business will enable you to provide new or improved innovative solutions and open the doors to other avenues and opportunities beyond the primary business objectives.
Ownership and control
Creating a custom solution without integrating too many existing third-party vendors enables businesses to easily modify the system to adhere to new strategic decisions without dealing with too many legalities. Sometimes, with off-the-shelf systems, changes to the existing system, deprecation of certain features, or even complete discontinuation of the software can result in the need to look for alternatives and perform redevelopment. On the other hand, with a custom solution built by a business, there is much less dependency on third-party utilities. If the need does arise to change external integrations, custom software, if constructed correctly, allows for a simple plug-and-play with substitute utilities rather than considerable amounts of reworks. The business has more control over the functioning and existence of the system.
Security and data safety
With cyber threats on the rise and hackers constantly finding new ways to break systems, all businesses must take their confidential and user data security seriously. Existing popular systems, which are more well-known and publicly available, are more common targets for users with malicious intent. Comparatively, uniquely built systems are less susceptible to cyber-attacks due to being less known. Furthermore, with a custom-built solution, higher levels of security can be put in place during development to ensure a more robust system that keeps data safe.
Data privacy
Depending on the jurisdiction, laws and regulations may impose strict requirements on businesses regarding handling user data, including restrictions on cross-border data transfers and mandates for data localization.
For example, in regions such as South Africa, stringent data privacy laws dictate that user personal data held by businesses must be stored within the country of operation, imposing additional constraints on data management and storage practices. Companies can address these regulatory challenges more effectively by opting for custom software solutions. By designing and implementing tailored data privacy controls and compliance mechanisms, companies can ensure adherence to legal requirements while minimizing the risk of non-compliance penalties and repetitional damage.
Costs
Even though developing a tailor-made solution may involve a much higher investment of time and money, it can be more profitable in the long run.
By purchasing licenses to off-the-shelf software, you generally pay for services and functionality that fall outside your primary domain. On the contrary, a particular system may not have the features to fulfill all your requirements, meaning investing in multiple systems becomes necessary. On top of that, you will still need developmental work to integrate all the various pieces of software you’re using. As mentioned above, when it comes to scaling and adapting to changing business requirements, moving from one system to another is expensive and is less effective than with a tailor-made scalable and flexible solution.
Conclusion
While off-the-shelf systems may have their place, the advantages of tailor-made solutions, especially in a rapidly evolving and competitive landscape, are undeniable. With the ability to scale, adapt, and innovate according to specific business needs, tailor-made software solutions offer unparalleled flexibility, customization, and control. Moreover, in an era where data security, privacy, and regulatory compliance are not debatable, you cannot overstate the peace of mind you get by investing in bespoke solutions. Thus, for businesses striving to stay ahead and carve out a unique identity in the market, investing in tailor-made software solutions is not just a wise decision but strategically essential.
